BHEL likely to enter F&O ban; heres why!

The June Future price is similar to its cash price. Interestingly, the June Future has witnessed a decrease in the open interest

Nifty index opened Tuesday’s session on a fragile note i.e. below the 15,800 mark amid tepid global cues and thereafter, went on to test the levels of 15,710. However, post making an intraday low of 15,710, the index recovered smartly, and currently, it’s trading with marginal gains i.e. above the 15,800 mark.   

Reliance Industries, Mahindra & Mahindra, and ONGC have collectively contributed as much as 37 points to Nifty kitty. Meanwhile, among the sector, Nifty Metal is holding the top gainer post, followed by Nifty Auto, which has gained 1.06 per cent.   

Interestingly, before the beginning of Tuesday’s session, there were two stocks in the F&O ban namely, Delta Corp and Sun TV. However, as the day progressed, the market-wide position limit (MWPL) declined with Sun TV MWPL, placed at 89.28 per cent while Delta Corp MWPL was placed at 84.5 per cent. So, both these stocks have a high probability of existing F&O ban. Meanwhile, BHEL MWPL is placed at 94.6 per cent, which seems a candidate to enter into the F&O ban.    

The stock of BHEL went up by over half a per cent on Tuesday while the June Future price is similar to its cash price. Interestingly, the June Future has witnessed a decrease in the open interest of nearly 11.70 per cent while the addition of 41.52 per cent & 19.41 per cent is seen in July and August Futures, respectively.